Deloitte sees healthy year for UKCS exploration
The level of exploratory drilling on the UK continental shelf
remains healthy even though the number of new wells fell
slightly in the 2013 second quarter compared with the
same quarter in 2012, reported Deloitte LLP’s Petroleum
The outlook for the last two quarters of 2013
should continue the positive trend, Deloitte signaled in a report issued in late July.
Sixteen exploratory and appraisal wells were
drilled in the UK in the second quarter, seven
more than in the first quarter and two fewer than
the same period last year. Despite the slight fall
from 2012’s figures, this year’s second quarter
still produced two more new wells than the quarterly average since yearend 2011—a year which
saw the lowest activity since 2003.
Across Northwest Europe as a whole, 35 new exploratory and appraisal wells were drilled, 10 more than in the
first quarter but only matching second-quarter 2012.
The latest figures are in line with what would be expected from a mature region such as the UKCS, said Graham
Sadler, managing director of Deloitte’s PSG.
Sadler said, “These figures indicate the UKCS remains
a strong and productive sector, which bodes well for the
final two quarters of the year. I fully expect to see further
positive figures in quarters three and four as the region
recovers from a prolonged and harsh winter, which was
followed by an unusually late spring.”
One of the notable features of the second-quarter per-
formance report is the significant increase in farm-in style
agreements. The report noted that farm-ins accounted for
around 70% of the total Northwest Europe deal landscape
in this year’s second quarter. Thirty deals were completed
in the region, down from 35 in the same period last year.
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